contemplating the intersection of work, the global economy, and Christian mission

Jan 28, 2008

Economics in Christian Perspective - Book Review

There is considerable debate in the public square these days about a number of issues that have significant economic components. Globalization, environmental protection, and aiding the poor are just a few. Decisions we make in our personal lives are influenced by our assumptions about economic realities as well. So how might mainstream economics connect with Christian Values and principles?

Victor Claar and Robin Klay, both professors of economics at Hope College in Holland, Michigan, published a book last summer called Economics in Christian Perspective: Theory, Policy and Life Choices. It’s a wonderful read. The book has eleven chapters, each devoted to a particular issue like the role of government, creation care, discerning vocation and caring for the poor versus worrying about the income gap.

The writing style is engaging. If you have a just a rudimentary grasp of some basic economic concepts the book should be intelligible. If not, you may find yourself having to work some in a couple of spots. But what is truly refreshing is the careful and respectful manner in which differing views are presented on some controversial topics even as the authors reveal their takes on issues. The book is neither a social justice harangue nor a libertarian manifesto, just solid Christian reflection on the implications of mainstream economic thought.

The authors conclude the book with “Nine Big Ideas from Economics That Can Help You Be a Good Steward Every Day.”

For everything you do, there is something you are choosing to leave undone.

The anticipated social benefit of any policy proposal must be seriously weighed against every likely social opportunity cost.

Actions speak louder than words.

Markets move precious resource from less-valuable to more-valuable.

Job creation is rightly viewed as a cost, not a benefit, of any initiative.

Free international trade is a proven way to help the world’s poorest people.

Hope for a better future may require temporary discomfort today.

Corrupt governments keep the poor down.

Sunk costs are sunk.

Claar was recently interviewed on a British radio program. You can listen to a mp3 of the interview by visiting his blog. I highly recommend this book for anyone wanting a thoughtful reflection on the interaction between faith and economics.

Comments

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Michael
During my summer vacation I read five books on Christian economics, including Klaar and Clay. They all had some good stuff, but in each case, I was really concerned about their views on the role of the government. They just assume (with a nod to Romans 13) that if the government can make things better, then that is justification for government intervention.

A good example is Klaar and Clay’s second principle that “The anticipated social benefit of any policy proposal must be seriously weighed against every likely social opportunity cost.” This is nonsense. First of all there is no way that we can measure social benefit, and measuring social opportunity cost is almost impossible, but even if there was, Christian ethics cannot be based on cost/benefit analysis. Social benefit greater than social cost does not make an intervention morally right. Proving that an intervention will work, is pragmatism. It does not make the intervention right.

I believe that the most important issue that Christian economists face in our time is defining the role of government. If these books are what Christian undergraduates are reading on this issue, I would be really concerned.

From a Christian point of view, the role of government should not be determined by what will work. It must be determined by what is right or what is just. If our Christianianity has any value, then we must be able to find out what is right from within the scriptures.

Ron, I appreciate your perspective on this but I think it is an area where we probably have some significant differences. I come to the Bible with a Redemptive-Movement Hermeneutic. Ultimate and penultimate ethics are revealed in scripture but they are revealed and applied into specific time and space contexts. As contexts change the application of those ethics change. I think there is a significant pragmatic element precisely because there is no manual, including the Bible, for applying ethics in our context. I part ways with Reconstructionism at this point.